• Wed. Jan 26th, 2022

Janeane's World

We train teams to work with confidence and competence. Call: 484 381 0532. Email: janeanedavis@janeanesworld.com.

You are Out of Work So Adjust Your Budget

If you find yourself suddenly out of work, be sure to adjust your budget. If you do, you will be able to enjoy your normal life for a lot longer.

African American woman with a checkbook and the words "You are Out of Work So Adjust Your Budget"

Some of my readers are old enough to remember the old saying, “It’s the economy stupid.”  In today’s economy, many people are finding themselves unexpectedly out of work. In many cases it is through no fault of their own, it’s the economy. However, no matter what the reason, out of work is out of work.

Over the next few weeks, we will be sharing articles on the topic of what to do when you find yourself out of work unexpectedly.   Future articles will look at:

  • using your networks to search for a job
  • starting something new
  • staying positive and focused

This week’s article is about adjusting your budget. In a previous article, I advised that everyone should have at a minimum, a six-month account. A six-month account is a readily liquid bank account that has sufficient funds to cover your current lifestyle for six months. My accountant husband read the article later and told me that under the current economic conditions the six-month account should be a minimum eighteen to twenty-four-month account.

Adjust your budget before you have to.

My own experience with being “between opportunities” taught me quite a few things. The major lesson is that one of the first things a newly unemployed person should do is make serious adjustments to the budget.

Elected officials often go back and forth about whether to increase or decrease the number of weeks of unemployment insurance provided to workers.  The elected officials seem to want to decrease the number of weeks to be provided. At the same time, it is taking even longer to find new employment for many people. Often it can be eighteen to twenty-four months before a person finds a new job. With all these things being true, it is important to reserve whatever income you as and to treat it as a precious resource.


If you want to read more about succeeding on the job search, check out:

Commit to Taking the Job Search Seriously By Updating Your Resume – It is wonderful to commit to taking the job search seriously by updating your resume. Click here to read more. 

Be Grateful for Your Job Even When it is Time to Go – when it is time to move on, still be grateful for the job you had. Click here to read more.

Also, check out our Confidence Tip of the Day YouTube channel for hundreds of videos on creating the confidence you need to succeed.


If you find yourself, unexpectedly out of work, adjust your budget. Cut back on expenses where you can now. Some treats will have to go. Instead of a weekly mani-pedi appointment, you may need to cut back to once per month or switch to doing these services at home. A similar paring knife should be taken to hair salon appointments, shopping trips for fun, and optional entertainment activities. If you start cutting back as soon as the unexpected separation from employment occurs, you will spend less money. If less money is spent the nest egg or unemployment insurance funds will go further and last longer.

Becoming separated from employment unexpectedly happens. So, the question for you this wonderful day is what is the first thing you would do if you found yourself unexpectedly out of work?

4 thoughts on “You are Out of Work So Adjust Your Budget”
  1. I have to agree with your husband, in this economy a goal of 2 years of basic necessities is smart to save knowledge your emergency fund. I would cut back on luxury items, as you mention and then maybe cut back on extras. Maybe basic cable, smarter grocery purchases, and memberships to non-necessity services. That is a great tip Janeane to cut back right away instead of waiting for necessity, it will also ease some stress to know you have extended your funds further.

  2. I knew you would have a lot of good ideas on this subject!!! The ideas you listed here are good ideas to start even when you are employed!

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